U.S. markets close in 3 hours 57 minutes
  • S&P 500

    3,624.71
    -10.70 (-0.29%)
     
  • Dow 30

    29,871.11
    -175.13 (-0.58%)
     
  • Nasdaq

    12,052.67
    +15.89 (+0.13%)
     
  • Russell 2000

    1,841.40
    -12.13 (-0.65%)
     
  • Crude Oil

    45.55
    +0.64 (+1.43%)
     
  • Gold

    1,809.40
    +4.80 (+0.27%)
     
  • Silver

    23.43
    +0.13 (+0.56%)
     
  • EUR/USD

    1.1913
    +0.0017 (+0.14%)
     
  • 10-Yr Bond

    0.8670
    -0.0150 (-1.70%)
     
  • GBP/USD

    1.3380
    +0.0022 (+0.16%)
     
  • USD/JPY

    104.3440
    -0.1360 (-0.13%)
     
  • BTC-USD

    18,975.82
    -290.82 (-1.51%)
     
  • CMC Crypto 200

    376.41
    +5.90 (+1.59%)
     
  • FTSE 100

    6,391.09
    -41.08 (-0.64%)
     
  • Nikkei 225

    26,296.86
    +131.27 (+0.50%)
     

Wabtec Buys RELCO Locomotives to Fortify Market Capabilities

Zacks Equity Research

Westinghouse Air Brake Technologies Corporation operating as Wabtec Corporation WAB acquired RELCO Locomotives, an established name in the locomotive leasing, rebuilding and repairing industry.

The transaction valued at $29 million on cash-free and debt-free basis, increases Wabtec’s freight services capabilities and capacity, thereby driving growth in the remanufacturing and repair business.

Wabtec’s president and CEO Rafael Santana feels that the combined entity will help generate aftermarket services growth, besides supporting the development of innovative solutions to improve asset utilization and lower operating costs for customers.

Westinghouse Air Brake Technologies Corporation Price

 

Westinghouse Air Brake Technologies Corporation Price
Westinghouse Air Brake Technologies Corporation Price

Westinghouse Air Brake Technologies Corporation price | Westinghouse Air Brake Technologies Corporation Quote


The buyout, accretive in the first year itself, will enable Wabtec to expand its network, fortify market capabilities and better serve the rail industry. RELCO is expected to have generated sales worth approximately $50 million in 2019.

Wabtec aims to grow its portfolio through strategic acquisitions. To this end, the company carried out a series of acquisitions in a short span of time. In February 2019, it completed the merger with GE Transportation, a business unit of GE. The consolidated entity has an expanded product portfolio and a larger customer base.
 
Previously, in 2018, the company bought Annax and Lynxrail. Annax complements Wabtec’s product portfolio with cutting-edge solutions and strengthens its capabilities with existing customers, simultaneously offering opportunities in the new markets. Meanwhile, Lynxrail’s technology in combination with Wabtec’s Track IQ cements the company’s position in wayside condition monitoring technology worldwide.

Zacks Rank & Key Picks

Wabtec carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. SKYW, Delta Air Lines, Inc. DAL and Hub Group, Inc. HUBG, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Shares of SkyWest, Delta and Hub Group have rallied more than 30%, 20% and 29%, respectively, in a year’s time.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
 
Hub Group, Inc. (HUBG) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research